Our approach to ESG
Our commitment to our clients is to consider the bigger picture when it comes environmental, social and governance (ESG) investing. We resist a formulaic or tick-box approach, and ensure that ESG considerations are fully integrated into our investment process and applied in line with our 3M philosophy.
We believe businesses must be sustainable to thrive and deliver shareholder value in the long term. Therefore, we do not believe ESG investing should be a simplistic, add-on or stand-alone process. Moreover, ESG is not just about the now, but also about the future. Part of our process is to engage with companies to ensure they improve their overall ESG record. As a result, not only do we invest in companies with good ESG track records, but we will also consider investment in companies that show a clear commitment to future improvement. After all, sometimes the biggest win for society is in helping perceived laggards make the transition to delivering on more sustainable outcomes. Importantly, we view ESG considerations holistically. ESG should not just about the E (environment). Social and governance factors require due consideration.
While our choices can sometimes appear counterintuitive at first glance, we believe our bigger picture perspective and longer-term approach can help to achieve more considered ESG outcomes, while also rewarding our investors in the long run.
More insights into our ESG Approach
Our annual Stewardship Report highlights our thinking on
ESG-related matters, and details new developments during the latest reporting period.
Our voting record
We aim to exercise our proxy voting responsibilities in an accountable and transparent manner. We report on our proxy voting decisions annually.
Other documents
Statement on the Code for Responsible Investing in South Africa (CRISA)
Case studies
How we weigh environmental factors (CNX Resources Corporation)
CNX Resources Corporation is a low-carbon gas-focused company in the Appalachian region of the Eastern USA that has formed part of our portfolios since 2021. It owns shale and midstream assets, as well as coalbed methane extraction operations across the region
How we weigh social factors (Nampak Limited)
In this case study, we also get a sense of how closely the various ESG issues are intertwined, as governance-focused interventions were key to achieving more robust social outcomes.
How we weigh governance factors (enX Group Limited)
enX Group Limited, a locally listed industrial group encompassing lubricants, chemicals, and power equipment, faced significant challenges in 2020.
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